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maximum number of partners in a firm

Section 11 Companies Act provides that the maximum no. of persons, a firm can have:In case of partnership firm carrying on a banking business 20 In case of partnership firm carrying on any other business 50 If the number of partners exceeds the aforesaid limit, the partnership firm becomes an illegal association.

CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.

As per provisions of Section 11 of the Companies Act, 1956 there cannot be more than ten partners in a firm
established for carrying on banking business and not more than twenty persons in a firm formed for the purpose
of carrying on any other business for profit. A partnership firm having more than the maximum prescribed limit of
partners shall be illegal.

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Maximum Limit on Number of Partners
Section 11 Companies Act provides that the maximum no. of persons, a firm can have:In case of partnership firm carrying on a banking business 20 In case of partnership firm carrying on any other business 50 If the number of partners exceeds the aforesaid limit, the partnership firm becomes an illegal association.
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**MAXIMUM NUMBER OF PARTNERS IN A FIRM**
As per provisions of Section 11 of the Companies Act, 1956 there cannot be more than ten partners in a firm
established for carrying on banking business and not more than twenty persons in a firm formed for the purpose
of carrying on any other business for profit. A partnership firm having more than the maximum prescribed limit of
partners shall be illegal.
However, members of joint families carrying on business in partnership are exempted from the maximum statutory
limit of partners prescribed under Section 11 of the Companies Act, 1956. If one joint family carries on business
in partnership with more than twenty persons of the same family, the said partnership shall not be unlawful. But
if two or more joint families carry on business with more than twenty adult persons, the association will be
unlawful. Although in the beginning such an association may have less than 20 members but subsequently if the
adult members exceed 20, the association will become illegal from the date when the membership exceeds the
statutory limit.
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